U.S. Sens. Todd Young (R-IN) and Angela Alsobrooks (D-MD) introduced legislation recently that would repeal the 12 percent federal excise tax on heavy trucks.
The legislation, the Modern, Clean, and Safe Trucks Act, would provide relief to truckers and trucking companies, which would precipitate lower prices for consumers, officials said. Currently, the national 12 percent excise tax on heavy trucks is the highest excise tax levied on any product in the country, adding as much as $15,000 to $30,000 to the cost of a new heavy truck, trailer, semitrailer chassis, or tractor. Officials said the tax makes it more expensive for trucking companies and independent operators to modernize their fleets. Additionally, because the tax only applies to new vehicle purchases, it creates an incentive to keep older vehicles on the road longer, slowing adoption of newer, safer and more fuel-efficient trucks.
“Repealing this tax is a simple step that can help the American trucking industry and consumers,” Young said. “This tax hurts the small businesses and independent truckers that are the core of American trucking, and it promotes the usage of older, less efficient trucks. Cutting the federal excise tax on heavy-duty trucks and trailers will lead to newer, safer, and cleaner trucks on America’s roads.”
The legislation is supported by several trucking organizations.
“First implemented over a century ago to fund America’s involvement in World War I, the FET currently adds tens of thousands of dollars to the cost of all new heavy-duty trucks and trailers, regardless of whether they run on diesel, alternative fuels, or zero-emission powertrains,” American Trucking Associations President & CEO Chris Spear said. “Keeping this antiquated tax on the books imposes an enormous hardship—particularly for the family businesses and independent truckers who make up the overwhelming majority of trucking. Removing this burden will allow motor carriers to replace their trucks and trailers with modern, safer, and cleaner equipment, which will in turn provide a boost to U.S. manufacturing jobs.”